Download - Gartner Shares most important trends in PPM
The bridge can be built by focusing
on Value & better Portfolio Management
80% of
PMOs are
below level 3
The
competitive
landscape is
in constant
Flux
Organizations
have already
taken all the
easy cost
reductions
The focus
shifts to
competitive
advantage
This makes
the success of
the planned
investment
more
important
Success
therefore isn’t
completion of
the project –
it is Value
Generated
Value
Generated
requires the
project to
deliver the
things that
enable the
value
generation
Maximum
Value
Generation
generally
entails
CHANGE
Unless you know to look for it…
You won’t see the impact of these changes until your organizationhas passed step 4
Then by the time You see the need to change
it’s too late…
4
“I don’t want to see anything about on-time and on-budget
in your reports. Going forward it’s all about value delivered”
Midwestern insurance company CIO
Resources
• Tacit Knowledge
• Thought Leadership
• Commissioned
Research
Curriculum
• Outcome driven
• Execution alternatives
Member Success
• Respect as measured
by press
• Good Compensation
Valu
e C
hain
IT Centered
Projects
Benefit Centered
Business Projects
Accounting for Value
Enterprise Portfolio
Roadmaps & Blue Prints
S/W Product Development
Strategy A Strategy B Strategy C Strategy D
Finance Project 1
Project 5
Project 10
Project 4
Customer Facing Project 3
Project 12
Process
Improvement
Project 2
Project 9
Project 8
Project 13
Project 11
Project 14
Project 6
Project 15
Innovation/
Learning and Growth
Project 7
And no – this isn’t short term thinking – This is real prioritization
This is a simultaneous
equation requiring
optimizing for
Maximum Value across
competing priorities.
Finally remember…
It’s you, rather than Management, who is responsible for the analysis
• Today everything is either a Project or it’s operations
• Tomorrow there will be:
• Programs for large change
• Projects for Intra-organizational change (which includes IT)
• New Product Develop Efforts for software that touches the customer (and might produce revenue)
• Product Releases for continuous change to maintain business capabilities
• Continuous change efforts (Kaizan, Workouts) and IT bug fixing
• Initiatives – speculative, exploratory work that might produce something new but also might determine that something shouldn’t be done.
Operations/
Production
Product Dev &
Evolving
Shared
Value chain
Control
&compliance
Corporate
CAPEX
Emergent
Responses
within
SBUs &
Functions
Traditional PMO Enterprise PMO
Investment FocusResponsible for discretionary spend for
projects
Visibility across all spend, both lights-on
and discretionary
Portfolio FocusResponsible for managing project
portfolios only
Responsible for integrating all portfolios
and mapping to business capabilities
Innovation & Portfolio SelectionDemand is consolidated from bottom up
requests from across the business
Higher quality demand is generated from
analysis of business capabilities /
products
Funding & AllocationFunding allocated by department and
organization utilizes an annual planning
model
Funding allocated by business capabilities
and teams empowered to adopt a dynamic
planning model
Portfolio Tracking & MeasurementA tactical focus on managing schedules,
resources and scope
More emphasis on tracking project
financial performance & maximizing ROI
across the investment portfolio
Benefits TrackingBased on project level ROI and often no
process for tracking actual benefits
Benefits realization framework
established at program or capability level
Take Your PMO to a New Level